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Important raw material: purchasing experts predict a shortage of magnesium

After the semiconductor crisis, the former Audi Board Member for Purchasing Bernd Martens and Ingolstadt economics professor Dirk Hecht are expecting the next bottleneck in magnesium. China dominates the semiconductor market and has almost a monopoly on magnesium with 87 percent of global production, said Hecht on Monday. The severe shortage of magnesium is already leading to record prices, creating global market distortions and “heralds enormous disruptions in the supply chain”. Political-strategic measures to ensure the flow of deliveries were not taken.

Today’s semiconductor shortage was not only caused by the corona pandemic, said the professor for procurement management at the TH Ingolstadt. China is efficiently implementing five-year plans for core technologies. Martens criticized that buyers were still largely based on costs. “The current example of supply bottlenecks and record prices for magnesium or a few years ago for rare earths show how the previous approach leads to a dead end.” German and European industrial policy has neglected to invest in the production of raw materials and core technologies such as batteries, semiconductors and telecommunications. This created a worrying dependency on others. (dpa / swi)

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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